Ramaswamy (Company Secretary) (83 Points)
05 November 2008Pleas tell me about crossed cheque?
what does it mean?.
Whether there is any difference betwwen crossed cheque and account payee cheque?.
If a company paid in excess of Rs.20000/ - by crossed cheques to a supplier of raw materails. If any disallowance for that and what rate. .
I am really confused in this. Please clarify my doubt.
viji
(CA FINAL student)
(62 Points)
Replied 05 November 2008
Hi Mr.Ramasamy hope this reply will clear your confusion.
In the front side of cheque on the left top corner there will be 2 parallel line which will be drawn by the payer which is called as crossing i.e. crossed cheque. it can be encashed only through account.
as per section 40A(3) on income tax act any payment exceeding Rs.20000 should be paid only crossed cheque or crossed DD else that particular payment will be disallowed.
is dat k.....
| Originally posted by :Guest | ||
| " | Hi Mr.Ramasamy hope this reply will clear your confusion. In the front side of cheque on the left top corner there will be 2 parallel line which will be drawn by the payer which is called as crossing i.e. crossed cheque. it can be encashed only through account. as per section 40A(3) on income tax act any payment exceeding Rs.20000 should be paid only crossed cheque or crossed DD else that particular payment will be disallowed. is dat k..... |
" |
Ramaswamy
(Company Secretary)
(83 Points)
Replied 06 November 2008
| Originally posted by :Guest | ||
| " | Hi Mr.Ramasamy hope this reply will clear your confusion. In the front side of cheque on the left top corner there will be 2 parallel line which will be drawn by the payer which is called as crossing i.e. crossed cheque. it can be encashed only through account. as per section 40A(3) on income tax act any payment exceeding Rs.20000 should be paid only crossed cheque or crossed DD else that particular payment will be disallowed. is dat k..... |
" |
Thank for your reply. As per guideline answers issued by ICSI , 20% of amount is disallowed when the payment is made to supplier by crossed cheque. It means crossed cheque and account payee cheques are same ? Please help me in this reagard
Karthikeyan N
(Accounts)
(21 Points)
Replied 21 February 2011
Dear sir,
Please clarify, whether cheque favouring "Yourselves" is to be crossed or not ?
CA Himanshu Bansal
(Risk Manager)
(2345 Points)
Replied 21 February 2011
| Originally posted by : Karthikeyan N | ||
 |
Dear sir, Please clarify, whether cheque favouring "Yourselves" is to be crossed or not ? |
 |
No.
Crossing is done so that payment is made only to an account, and not in cash.
Here cash is withdrawn by holder, so it should not be crossed.
CAclubindia
